YES Bank share price hits upper circuit of 20% on plan to raise Rs 5,000 crore

YES Bank share price rose in early trade today after the bank's newly formed board cleared a plan to raise Rs 5,000 crore through sale of shares. Share price of YES Bank rose up to 20% to Rs 31.95 compared to the previous close of Rs 26.55 today. YES Bank share opened with a gain of 9.94% at Rs 29.30 today.

YES Bank market capitalisation rose to Rs 40,098 crore on BSE. Total of 13.63 lakh shares changed hands amounting to turnover of Rs 4.31 crore. YES Bank share has lost 88% in the last one year and fallen 32% since the beginning of this year.

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The decision on nature of securities for fund raising would be taken later. Funds would be raised in one or more tranches to improve capital position of the lender. The bank did not say by when it would complete the share sale.State Bank of India (SBI), which is heading the consortium formed for the revival of YES Bank, will infuse Rs 7,250 crore into the bank.

ICICI Bank and mortgage lender HDFC will invest Rs 1,000 crore each. Axis Bank will invest  Rs 600 crore, while Kotak Mahindra Bank will put in Rs 500 crore. Bandhan Bank and Federal Bank will invest Rs 300 crore each, while IDFC First Bank will put in Rs 250 crore.

On March 19, YES Bank shares fell 25% after company's single largest promoter Madhu Kapur, the widow of its founder-chairman Ashok Kapur, sold 2.5 crore bank shares in a block deal. According to the regulatory statement submitted, the shares were pledged with HSBC Investdirect Financial Services (India).

Yes Bank plans to raise Rs 20,000 crore via certificate of deposits

On March 24, Icra placed the lender under 'rating watch with developing implications' and upgraded the bank's Basel III compliant bonds, infrastructure bond programme, certificates of deposit programme and short-term fixed deposit programme.

On March 16,  Moody's Investors Services upgraded the lender's long-term foreign currency issuer and foreign currency senior unsecured MTN program ratings to 'Caa1' from 'Caa3' and (P) Caa1 from (P) Caa3, respectively.

Moody's also changed the rating outlook to positive to reflect its expectation that bank's financial fundamentals can improve due to the extraordinary support provided by the government and SBI.

Eight banks including SBI came have come to the rescue of troubled lender with a total capital of over Rs 11,000 crore.

ICICI Bank and mortgage lender HDFC will invest Rs 1,000 crore each. Axis Bank will invest  Rs 600 crore, while Kotak Mahindra Bank will put in Rs 500 crore. Bandhan Bank and Federal Bank will invest Rs 300 crore each, while IDFC First Bank will put in Rs 250 crore.